Small and medium-sized enterprises (SMEs) are the backbone of the UK economy, yet many ambitious businesses continue to struggle to secure the finance needed to grow, innovate and create jobs.
An insight report from Oxford Innovation Advice, Breaking Barriers: Unlocking Financial Access for SMEs, challenges a long-held assumption that the primary issue is a lack of funding availability. Instead, the research suggests that many businesses are being held back by a lack of financial capability, confidence and investment readiness.
Drawing on nearly four decades of experience and helping businesses secure £227 million in finance across the UK since 2017, the report highlights a growing disconnect between the increasing range of finance options available and the ability of businesses to navigate them effectively.
The findings reveal that many SMEs still do not produce regular management accounts or cashflow forecasts, while a significant proportion rely solely on their main bank when seeking finance. When applications are unsuccessful, business owners often abandon growth plans altogether rather than exploring alternative funding routes.
For diverse and underrepresented business communities, including many businesses represented across the Yorkshire Asian Business Association network, these challenges can be amplified. Access to information, confidence in engaging with lenders and investors, and understanding the full range of available finance options remain critical factors in unlocking growth opportunities.
The report argues that policymakers should move beyond a traditional “supply-side” approach focused on increasing finance availability and instead invest in programmes that build financial capability and investment readiness. Recommendations include embedding access-to-finance support within wider business support ecosystems, providing structured financial management training, and creating stronger pathways for early-stage businesses to access investment.
Evidence from Oxford Innovation Advice’s programmes demonstrates that businesses equipped with stronger financial management skills are more resilient, more competitive and better positioned to secure external investment. Across the UK, tailored support programmes are already helping SMEs improve forecasting, strengthen business planning and access the right finance at the right time.
As regional leaders seek to drive productivity, innovation and inclusive economic growth, investing in financial capability may prove to be one of the highest-return interventions available.
Call to Action
If you are a policymaker, or economic development organisation looking to deliver measurable business growth outcomes, Oxford Innovation Advice works with public and private sector partners to design, mobilise and deliver high-impact business support programmes that generate long-term economic value and true ROI for local economies. To discuss how tailored access-to-finance, growth or innovation support could benefit your region, get in touch with Oxford Innovation Advice today.